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price ceilling

There are different ways the government in a developing country wants to protect consumers from conditions that could make necessary merchandises out-of-the-way. One of the things is price ceiling, which a government-forced limit on the price charged for a product. Price ceiling is a situation when the price charged is more than or less than the equilibrium price determined by market forces of demand and supply. Though, a price ceiling can cause problems if forced for a long period without controlled limits. Misuse occurs when a government accidentally priced a price as too high when the real problem is that the supply is too low. Price ceilings can produce negative results when the correct solution would have been to increase supply. It can introduce a black market, it can creates a persistent shortage, decreases in investment, or price on the black market ends up higher than the equilibrium price. For example, if the government set a price ceiling on bread in order to make this basic food more affordable. And other side assuming that each hour that people wait in lines represents a lost hour of work. Under many circumstances the ceiling lead to long lines and thus high costs in lost work hours. A price ceiling that is below market equilibrium will be a binding price ceiling and that could cause a shortage due to increasing demand because of the lower price of the product. And it could create a black market where people can buy it for double the price for the bread. On the other hand, if there is an hour that an individual must wait in line, there is a lost hour of work for the supplier. Due to the supplier losing an hour of work it will cut into the profits of that firm making their total revenue. The supplier will already loose the benefit of selling to a certain buyer within that hour period. However if the firm hired more workers to create a shorter wait in the line they may be able to make the most out of it. So if the supplier...

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JWI 515: Assignment Four: Price Discrimination
Amusement Parks
Professor Serluco
Managerial Economics
Charles W. Slaven
November 30th, 2014
Introduction
Consider these Amusement park pricing scenarios:
Six Flags Discovery kingdom sells its annual season pass for $59.99. According to its website, “Buy your Season Pass for $59.99, just $14 more than a one-day admission.”
Bush Gardens Dark Continent. sells its Fun Card for $95.00. According to its website, “Pay for a Day, Get now through 2015 FREE.”,
Now why would they give away an unlimited entry annual pass for an extra 25% over the single entry price?
What is common in these pricing scenarios?
All these businesses are practicing what economists call, “Metered Price Discrimination“, or what marketers describe as, “Customer Margin”. It all starts with, “price discrimination” – charging different customers different prices.
Customers differ in the value they get from a product/service and in how much they are willing to pay for it. For each price point you set, there will be different number of customers willing to pay that price. That is your demand curve. The goal is to find the price that maximizes profit. There are many different ways to monetize the customer and Amusement parks offer us a great opportunity to examine several of them. As in the example above, Amusement Parks employ multiple...

...Introduction
Over the past five years or so, house prices in the UK have been constantly changing. At times, house prices being on a rapid increase and at other times falling. This leads to a possibility of negative house equity. As per Sloman and Garratt: “negative house equity is whereby the outstanding value of a mortgage is greater than the value of property against which it is secured.” (Text Book) Supply and demand are the main determinants of house prices, as the equilibrium of house prices will fall if demand rises and supply falls. An important characteristic of UK house prices identified from the UK house price inflation chart is the tendency of prices to rise over the long term, more quickly than incomes and consumer prices. This rise is because demand has grown faster than supply. There are several factors involving supply and demand analysis which I think have been important in affecting house prices in the UK over the past few years – These factors are: the change in incomes, the cost and availability of mortgages, speculation and consumer confidence.
Incomes
From 2004 until 2007 the UK has been in an economic ‘boom’ with rapidly increasing incomes and an annual rate of house price inflation exceeding 25% around 2004, as shown in the house price % change graph. “As average living standards rise, the...

...﻿Price
Marketing is defined as the “activities that direct the flow of goods and services from producers to consumers” . The process of marketing involves planning and employing an array of methods known as the marketing mix (price, place, promotion, and product). An aspect of the marketing mix is price, which is the value received by a business in exchange for its goods . Pricing is thought to be the most crucial factor of marketing mix, as it is directly correlated with revenue and profitability . Therefore, one of the most significant marketing decisions a company has to make is establishing a solid pricing strategy.
Even though it may seem that price is only about a figure, it is a multidimensional subject that can make the difference between success and failure of an enterprise. There is a series of factors that determine the price of a product, most important of which is the balance between supply and demand, strong and effective competition or the lack of it, and production cost . Nevertheless, corporation’s pricing objectives such as premium, volume, and profitability pricing can influence the price of goods as well . Thus, it can be inferred that price is an element which fluctuates dynamically.
When it comes to setting a price for their merchandise, companies can choose from a considerable range of different pricing strategies. To illustrate one of...

...3 price discrimination
With the rapid development of economy and market, the price discrimination phenomenon is more and more universal and the form is more and more multiple.
Price discrimination refers to companies selling exactly the same or similar production to different customers at different prices.
1In November 2006, the major IT Web site noted, Lenovo in the United States launched a holiday promotion, and four models of ThinkPad were under undercut. TP R60 price was down from $ 640 to $ 565, the maximum price decrease of 33% and 42% respectively. The discount in United States was bigger compared to China. (xueqin Tong, yunyun Huang, Special case of price discrimination, June 2007).
2As we all know, the global laptop PC market in general is not the monopoly structure,
there are many well-known brand laptops, such as Asus, Apple and HP.
Lenovo's TP Series laptop is different. ThinkPad is originally created by IBM high-end business laptop. Consumers’ awareness of TP is the leader of laptops and it represents high-end, technical, excellence, honour, and identity.
TP series are not cost-effective terms. There are not so many companies competing with TP. It is also difficult for other computer companies to collude with TP and to create an avenue, so the ThinkPad series are more influential in the market. Lenovo TP pricing strategy at China and abroad...

...REFERENCES................................................................-9-
1. Introduction:
Price discrimination happens when an organization or firm considers different price strategies for the same or identical goods to different groups of customers. This customer groupism based upon on certain attributes and accordingly they charge different price. For an example, Mercedez-Benz when it introduced 190 Sedan in the United States of America, it was sold for $26000 compared to West Germany where it was sold for $12000. Pharmaceutical companies fix different rates for the same drug in different countries. Senior citizens are offered lower fares in bus and movie theatres. These are a few common examples for price discrimination.
2. Conditions necessary for profitable price discrimination:
A firm’s profit rises significantly by adopting price discrimination. To practice price discrimination profitably three conditions must be satisfied.
➢ The firm should be a price maker:
Let us suppose the supplier of the good is a price taker. In such a case, all the consumers would pay the same price for the supplier’s goods. Charging different prices to different customers would be of no value and so the best they can do is charge everyone their common willingness. But if a price maker foolows this...

...The purpose of this essay is threefold. First,to identify specific factors and the environment affecting an export price policy. Second, to analyse thisthese factors within our firm and to extract the best decisions given our starting point. Finally, to consider the above and to give guidelines governing thatwhat should be applied in the international marketing price. It should be noted that in some cases due to an information deficiency, assumptions should be madee.
“Pricing is the moment of truth” (Stottinger,2001). Probably this affirmation is essentially valid in domestic marketing, even more in international marketing. Surprisingly, the literature in this area is characterized by a gapthere is a gap in the literature in this area. Given theirits importance, pricing havehas not attracted much academic research interest compared with other tools of marketing (Stottinger, 2001). Nevertheless, this should not be and cannot be a barrier for the quality of this essay.
Albaum and Duerr (2008) no havehave not given a clear message regarding the level of difficulty about practice of establishing an international price. However, for a large influx of authors export price differs from domestic price, and due to thatthis the environment is sui generis in each country (Jain, 1989).It is the writer´s opinion that an overview of the challenge gives the impression that it is somewhat more difficult than in...

...that manages apartments decides to buy 17 new dishwashers at a list price of $750 each as replacements for old dishwashers in a small apartment complex it owns. Because the company is buying more than 10 dishwashers, it is eligible for a $150 per unit quantity discount. Financing charges total $20 per unit. The company gets $10 per dishwasher for the 17 dishwashers traded in. What is the actual price the company will pay for each dishwasher?
A. $600
B. $610
C. $590
D. $730
E. $760
6. Creative marketers engage in _____, the practice of simultaneously increasing product and service benefits and maintaining or decreasing price.
A. value-pricing
B. revenue sharing
C. quantitative analysis
D. diminishing returns
E. cost-plusing
7. Consumers will often make comparative value assessments. That is, the consumer will judge one product or service against other alternatives or substitutes. In doing so, a "_________" emerges, which involves comparing the prices and benefits of substitute items.
A. comparative value
B. reference value
C. differential value
D. assessed value
E. none of the above
8. A buying situation can involve comparing the costs and benefits of substitute items - such as real sugar to the sugar substitute Equal which, although more expensive than sugar, is purchased by many consumers because it contains no calories. This situation involves the consumer considering: ...